In the world of farming, where every penny counts, the rise of agricultural machinery auction houses has been a double-edged sword. On one hand, these platforms provide a convenient way for farmers to buy and sell used equipment. On the other hand, they can make it harder for farmers to turn a profit, thanks to high seller’s fees and buyer’s premiums.
One of the biggest players in this space is BigIron, which just recently added buyer’s premiums to its auctions. This means that on top of the price of the equipment, buyers now have to pay an additional fee to the auction house. For example, if a tractor sells for $200,000, the buyer might have to pay an extra $20,000 in buyer’s premium, if it is not capped.
While these fees might not seem like too much, they can add up quickly, especially for farmers who are already struggling to make ends meet. And it’s not just BigIron – most other auction houses like Ritchie Bros., Purple Wave, DPA, Machinery Pete, and JJ Kane are charging hefty buyer’s premiums – most of them 10% or more. BigIron was pretty much the only place where there was only a seller’s fee, but not anymore.
The result? Farmers are finding it harder and harder to make a profit. They’re paying more for equipment than they used to, and they’re not getting as much money when they sell their own machinery. It’s a tough situation, and it’s one that’s likely to continue as long as auction houses keep adding fees.
So what can farmers do? One option is to try to negotiate with the auction houses. Another is to look for other ways to buy and sell equipment, such as through private sales or online marketplaces. But at the end of the day, the rise of auction house fees is just one more challenge that farmers have to deal with.